Binomial Option Calculator with continuous dividend yield
The stock providing a continuous dividend yield at rate q can easily be adapted to valuing American and European option price. Here shows the Binomial Tree model with continuous dividend yield.

Comparing with the valuation of Binomial Tree model on European option with continuous dividend yield with Black & Scholes model, the European option shows on average higher values than calculated with the Black & Scholes model.

European call European put American call American put

Input parameters		Result
Stock price (S)	$	Option price (P)	$
Strike price (X)	$
Years to maturity (T)	Year
Risk free rate (R)	%
Number of steps	Steps
Dividend yield (D)	%
Volatility (V)	%

Visualized Binomial Tree

Here shows the visualized Binomial Tree with the parameters set from the option calculator above. The visualized Binomial Tree only show the first five steps. The stock prices are shown in 2 decimal places while option prices are shown in 4 decimal places.

Run it!!                  press button to reset to default values above:
                   (make sure some values are
                          in the form above)

Time
Steps

Stock price
Option value
	Stock price
	Option value
		Stock price
		Option value
			Stock price
			Option value
				Stock price
				Option value
					Stock price
					Option value

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